Snowflake Inc. (SNOW) Stock Moves -0.82%: What You Should Know

Snowflake Inc. (SNOW) closed the most recent trading day at $157.78, moving -0.82% from the previous trading session. Elsewhere, the Dow saw an upswing of 0.44%, while the tech-heavy Nasdaq depreciated by 0.18%.

Prior to today's trading, shares of the company had gained 2.26% over the past month. This has outpaced the Computer and Technology sector's gain of 0.83% and the S&P 500's loss of 0.22% in that time.

The investment community will be paying close attention to the earnings performance of Snowflake Inc. in its upcoming release. The company is slated to reveal its earnings on May 22, 2024. On that day, Snowflake Inc. is projected to report earnings of $0.16 per share, which would represent year-over-year growth of 6.67%. At the same time, our most recent consensus estimate is projecting a revenue of $786.95 million, reflecting a 26.2% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.85 per share and a revenue of $3.38 billion, representing changes of -13.27% and +20.44%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Snowflake Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.04% higher. Snowflake Inc. currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Snowflake Inc. is presently trading at a Forward P/E ratio of 186.43. This represents a premium compared to its industry's average Forward P/E of 30.14.

It's also important to note that SNOW currently trades at a PEG ratio of 10.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.68.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 70, positioning it in the top 28% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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